Correlation Between Electrosteel Castings and Bombay Burmah
Specify exactly 2 symbols:
By analyzing existing cross correlation between Electrosteel Castings Limited and Bombay Burmah Trading, you can compare the effects of market volatilities on Electrosteel Castings and Bombay Burmah and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Electrosteel Castings with a short position of Bombay Burmah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrosteel Castings and Bombay Burmah.
Diversification Opportunities for Electrosteel Castings and Bombay Burmah
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Electrosteel and Bombay is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Electrosteel Castings Limited and Bombay Burmah Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bombay Burmah Trading and Electrosteel Castings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Electrosteel Castings Limited are associated (or correlated) with Bombay Burmah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bombay Burmah Trading has no effect on the direction of Electrosteel Castings i.e., Electrosteel Castings and Bombay Burmah go up and down completely randomly.
Pair Corralation between Electrosteel Castings and Bombay Burmah
Assuming the 90 days trading horizon Electrosteel Castings Limited is expected to under-perform the Bombay Burmah. In addition to that, Electrosteel Castings is 1.43 times more volatile than Bombay Burmah Trading. It trades about -0.24 of its total potential returns per unit of risk. Bombay Burmah Trading is currently generating about -0.3 per unit of volatility. If you would invest 231,740 in Bombay Burmah Trading on October 19, 2024 and sell it today you would lose (31,650) from holding Bombay Burmah Trading or give up 13.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrosteel Castings Limited vs. Bombay Burmah Trading
Performance |
| Timeline |
| Electrosteel Castings |
| Bombay Burmah Trading |
Electrosteel Castings and Bombay Burmah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrosteel Castings and Bombay Burmah
The main advantage of trading using opposite Electrosteel Castings and Bombay Burmah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrosteel Castings position performs unexpectedly, Bombay Burmah can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bombay Burmah will offset losses from the drop in Bombay Burmah's long position.| Electrosteel Castings vs. Kilitch Drugs Limited | Electrosteel Castings vs. General Insurance | Electrosteel Castings vs. Life Insurance | Electrosteel Castings vs. Sintex Plastics Technology |
| Bombay Burmah vs. MSP Steel Power | Bombay Burmah vs. Electrosteel Castings Limited | Bombay Burmah vs. NMDC Steel Limited | Bombay Burmah vs. Kamat Hotels Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |